How Poor Mental Health Contributes to Poverty

Let's tackle something you might not link right away with mental health: its connection with poverty. It's an overlooked angle, but incredibly important.

People living in poverty are often dealing with more mental health issues, and those mental health struggles can also drag someone into poverty. Conditions like depression, anxiety, and addiction are more common when you're at a socio-economic disadvantage, making things even tougher.

Here at Fundamental change, we want to make mental healthcare accessible for all and break down the barriers that keep people from getting the help they need. By tackling these issues, we can help everyone lead more stable lives financially and create a society that's ready to support everyone, no matter their situation.

Mental health tackles our emotional, psychological, and social well-being. It can be thought as backbone of our thoughts, feelings, and actions. Conditions under the mental health umbrella range from depression and anxiety to bipolar disorder, schizophrenia, and addictions, varying in intensity and often requiring help or treatment.

Poverty, however, is when someone doesn't have enough money or possessions for a comfortable life. In the U.S., whether you're considered in poverty depends on your family size and make-up, according to the Census Bureau. But poverty is more than just not having enough money. It includes a shortage of resources and chances that can hold someone back from moving up in the world. Things like not having a job, not getting enough education, facing big medical bills, not having a good place to live, and more can all play into it.

People in poverty often can't cover the basics—food, a place to live, getting around, or healthcare. Poverty can be a temporary situation, something that lasts generations, or be part of a larger, systemic issue. It brings constant stress and cuts off access to the help and resources that could make life better, standing in the way of opportunities and making it hard to find financial stability.

Research has shown a strong correlation between mental health issues and poverty. Those living in poverty are more likely to experience mental health problems, while those with mental health issues are more likely to end up in poverty.

Several major studies have found evidence of this link:

• A 2020 study published in JAMA Psychiatry analyzed data from over 200,000 people and found that socioeconomic disadvantage was associated with increased odds of mental illness. People with incomes below the poverty line were 2-3 times more likely to have conditions like depression and anxiety.
  
  
• A 10-year study by researchers at the University of Oxford tracked over 4,000 people and found that those with mental health issues at the start were more likely to have experienced poverty, unemployment, and homelessness at the end.
  
  
• Research by the World Health Organization spanning multiple countries concluded that mental health disorders occur more frequently among those facing economic hardships. Rates of common diagnoses were consistently higher among groups affected by poverty.

The link is clear, but the why part is complicated and layered. Money problems can impact mental health hard, and at the same time, mental health issues can make holding down a job tough and drive up healthcare bills.

This creates a cycle that can keep people stuck in poverty. To really make a difference, we have to attack both sides of the problem. This means coming up with policies and programs that boost economic chances, make getting help less expensive, cut down on the shame surrounding mental health, and offer more support.

Employment Rates and Productivity

People with mental health challenges often hit big roadblocks when it comes to landing and holding onto a job.

Issues like depression and anxiety can knock down motivation, focus, and energy, which makes it tough to look for jobs, ace interviews, and keep up with day-to-day tasks at work.

According to our research, unemployment rates are 3 to 5 times higher for people with a serious mental illness compared to the general population. Even when employed, mental health symptoms often lead to higher absenteeism and presenteeism, reducing productivity in the workplace. Cognitive and social limitations may also impede job performance.

Income Disparities

In addition to employment challenges, mental health conditions contribute to large income disparities. 

Income gaps are another big issue. Mental health conditions can lead to significant income differences. On average, people dealing with mental illnesses earn about 70% less than those without these challenges. Working fewer hours or not being able to move up to better-paying positions just makes the income gap wider. Plus, the costs of treatments and medications can really eat into their finances.

Financial Burdens

Getting help for mental health, like therapy, psychiatric care, and medication, often comes with steep costs, high insurance premiums, and big deductibles. For many struggling with their mental health, affording care just isn't in the cards. It would not even be an option that they would consider. 

The cost of mental healthcare puts a real strain on economic chances and upward movement for those dealing with mental health issues. Not being able to get steady, good-quality treatment means symptoms that interfere with work or school just keep going. These expenses can lock people into poverty and a cycle of worsening mental health. It's essential to create policies that lower the cost and increase the availability of mental healthcare, helping people with mental health conditions find more financial stability.

Mental health issues can have a significant impact on an individual's educational attainment and access to higher education. Children and adolescents with untreated mental health disorders often struggle academically and have high dropout rates. Attention, concentration and memory problems make it difficult to learn and retain information. Anxiety, depression, trauma, and other issues also frequently lead to chronic school absenteeism.

Without a high school diploma, opportunities for stable employment or pursuing higher education are limited. Even for those who do graduate, the stress and functioning impairments caused by mental illness may prevent them from being able to perform well enough on standardized tests to get into college. Then there's the cost of college, which is a whole other barrier if you're already struggling to make ends meet. Taking on student loans just adds to the debt pile, making financial problems even worse.

This lack of educational opportunities keeps the cycle of poverty going strong from one generation to the next. Parents who didn't get much education themselves often can't provide an environment that supports doing well in school. Poverty and all the problems that come with it make it hard for smart kids to succeed academically. Even though education is often seen as a ticket out of poverty, systemic obstacles and mental health challenges can block the way for those who are already facing tough times.

Join us in making a FundaMental Change in the lives of individuals impacted by mental health challenges and poverty. Whether you're a policy leader, community activist, or concerned resident, there are numerous ways you can get involved and make a difference.

Attend our Annual Mental Health Symposium held every May during Mental Health Awareness Month. Engage in insightful discussions, gain valuable knowledge, and connect with like-minded individuals dedicated to improving mental health outcomes in our communities.

Participate in our Sip of Hope series, where we host community conversations about suicide prevention, mental health, and overall well-being. Your voice matters, and together, we can raise awareness, reduce stigma, and foster supportive environments for those in need.

Together, let's create a more compassionate, supportive, and inclusive community where everyone has the opportunity to thrive. Join FundaMental Change in making a positive impact on mental health and poverty in the San Fernando Valley and beyond.